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I have an existing mortgage with FW and am thinking of refinancing with them.
Why with them? Normally I have to pay ~2% NY mortgage tax on my entire new loan amount, which will cost me ~$6500. I know there's a program (document) called CEMA - Consolidation, Extension and Modification Agreement where you will only have to pay the tax on any new money (any increase in the loan amount above what you originally borrowed). Not all banks do CEMA and those who do it - agree on it only if they keep the mortgage, i.e. you refi with them.
I wonder if WF does CEMA and if this no-cost refi is the same idea, just different name.
Question to those from NY state - did you have to pay the NY mortage tax under WF streamline refi?
Also - how do I find out who holds my mortgage?
Thank you,
Uri
Last edited by ymandj; 01-14-2012 at 02:37 PM..
Reason: added a question
Just completed an on-line closing for the 3-step refinance with Wells Fargo yesterday. It took only 38 minutes on-line with the coordinator and a closing attorney. We dropped another 1.5% off our existing loan and at no cost, it was a no-brainer. Praise for Wells Fargo
I'm also going through the WF 3-step, no fee refinance right now. I've had a little confusion and found some surprises, but everything has been explained to my satisfaction.
After I chose the option I wanted (20-yr., 30-yr., etc.), an agent asked me questions on the phone and filled out paperwork for me. Then a loan officer got in touch and was very helpful explaining the next steps. I received a welcome package of papers in the mail.
Then I started having 2nd thoughts about the higher payments I'd be facing with a 20-year, so I asked if it was too late to switch. The loan officer just switched it to a 30-year over the phone. I got a second welcome kit with the new rate (4.0%)
A big package arrived with settlement documents to sign. Only 2 of them need to be notarized. I plan to go with my wife to a WF branch and use their notary at no charge.
The WF loan officer in Alabama has been very helpful with answering my concerns. The settlement statement does show a lot of fees (title services, govt. recording charges), but these are just FYI and there is a credit that you see on the statement that covers all of them.
I also panicked when I saw that I would be borrowing about $1500 more than my most recent unpaid principal balance. I thought "aha, so that's how they make their money!" But the loan officer explained that the extra $$ was the interest I would not yet have paid at the time when the new loan funds. (Each month you pay the previous month's interest charges, so they basically add your current month's interest to the amount you're borrowing--actually they add 2 month's interest, since you also skip one payment.)
So while I'm not finished yet, everything seems in order, and my monthly payments will drop $180...however this is misleading, because I'll also be spreading them over 30 years again, and I'm already 5 years into my current mortgage. So that accounts for some of the reduction. I plan to set up auto withdrawn payments and pay more each month, to go toward the principal (and reducing the length of the loan). Hope this helps someone.
If you can afford it, go with their auto bi-weekly payment plan. This should shave off nearly 7 years of payment, which will put you below that of your current mortgage, plus save $ on interest.
Quote:
Originally Posted by Bob468
I'm also going through the WF 3-step, no fee refinance right now. I've had a little confusion and found some surprises, but everything has been explained to my satisfaction.
After I chose the option I wanted (20-yr., 30-yr., etc.), an agent asked me questions on the phone and filled out paperwork for me. Then a loan officer got in touch and was very helpful explaining the next steps. I received a welcome package of papers in the mail.
Then I started having 2nd thoughts about the higher payments I'd be facing with a 20-year, so I asked if it was too late to switch. The loan officer just switched it to a 30-year over the phone. I got a second welcome kit with the new rate (4.0%)
A big package arrived with settlement documents to sign. Only 2 of them need to be notarized. I plan to go with my wife to a WF branch and use their notary at no charge.
The WF loan officer in Alabama has been very helpful with answering my concerns. The settlement statement does show a lot of fees (title services, govt. recording charges), but these are just FYI and there is a credit that you see on the statement that covers all of them.
I also panicked when I saw that I would be borrowing about $1500 more than my most recent unpaid principal balance. I thought "aha, so that's how they make their money!" But the loan officer explained that the extra $$ was the interest I would not yet have paid at the time when the new loan funds. (Each month you pay the previous month's interest charges, so they basically add your current month's interest to the amount you're borrowing--actually they add 2 month's interest, since you also skip one payment.)
So while I'm not finished yet, everything seems in order, and my monthly payments will drop $180...however this is misleading, because I'll also be spreading them over 30 years again, and I'm already 5 years into my current mortgage. So that accounts for some of the reduction. I plan to set up auto withdrawn payments and pay more each month, to go toward the principal (and reducing the length of the loan). Hope this helps someone.
If you can afford it, go with their auto bi-weekly payment plan. This should shave off nearly 7 years of payment, which will put you below that of your current mortgage, plus save $ on interest.
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easy refinance
when I saw that I would be borrowing about $1500 more than my most recent unpaid principal balance. I thought "aha, so that's how they make their money!" But the loan officer explained that the extra $$ was the interest I would not yet have paid at the time when the new loan funds. (Each month you pay the previous month's interest charges, so they basically add your current month's interest to the amount you're borrowing--actually they add 2 month's interest, since you also skip one payment.) 
